Physicians Could See 2023 Medicare Rate Freeze

March 17, 2022

On March 15, the AMA sent a letter to Congressional leadership disputing a recommendation (p. 149) by the Medicare Payment Advisory Commission (MedPAC) to freeze Medicare physician payment rates for 2023.  

MedPAC is an independent congressional agency established by the Balanced Budget Act of 1997 to advise Congress on issues affecting the Medicare program. 

While MedPAC includes in its rationale that they expect “volume and revenue to return to prepandemic levels (or higher) by 2023,” the AMA stresses that this rationale fails to recognize “fiscal uncertainties related to the COVID-19 pandemic, statutory payment cuts, consistent lack of inflationary updates, and significant administrative barriers.”  

The AMA also argues that a continued freeze on Medicare payments to physicians is irreconcilable with “the nearly 8% payment increase the Centers for Medicare & Medicaid Services projects for Medicare Advantage plans in 2023.” The AMA letter goes on to criticize a lack of adequate annual updates to physician payment under Medicare.  

The MMA recently met with members of the Minnesota Congressional Delegation to urge their support of adequate Medicare physician payment and will continue to inform membership of federal movement on this issue.